On April 1, 2016, Cyclone’s Backhoe Co. purchases a trencher for $280,000. The m
ID: 2526461 • Letter: O
Question
On April 1, 2016, Cyclone’s Backhoe Co. purchases a trencher for $280,000. The machine is expected to last five years and has a salvage value of $40,000.
Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method. (Enter all amounts positive values.) (partial year 1/12, 2/12, 3/12, or 4/12)
Depreciation for the Period End of Period Annual Period Beginning of Period Book Value Depreciation Rate Partial Year Depreciation Expense Accumulated Depreciation Book Value 2016 2017Explanation / Answer
Depreciation for the Period
End of Period
Annual Period
Beginning of Period Book Value
Depreciation Rate
Partial Year
Depreciation Expense
Accumulated Depreciation
Book Value
2016
$2,80,000
40%
9/12
$84,000
$84,000
$1,96,000
2017
$1,96,000
40%
12/12
$78,400
$1,62,400
$1,17,600
****Depreciation Rate = 2 * 1/5 = 40%
$84000 = $280000 x 0.40 x 9/12
$78400 = $196000 x 0.40
Depreciation for the Period
End of Period
Annual Period
Beginning of Period Book Value
Depreciation Rate
Partial Year
Depreciation Expense
Accumulated Depreciation
Book Value
2016
$2,80,000
40%
9/12
$84,000
$84,000
$1,96,000
2017
$1,96,000
40%
12/12
$78,400
$1,62,400
$1,17,600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.